Ho Chi Minh City (HCMC) will work with the Ministry of Agriculture and Rural Development to develop five zones in 13 provinces dedicated solely to agriculture, forestry, and fisheries at USD 107 million by 2025.
The country’s agricultural sector has not evolved sustainably because output and consumption are still strongly reliant on a few markets, climatic conditions, and other capacity-limiting factors. It results in low quality and competitiveness, as well as significant post-harvest losses and low revenue for farmers.
The new specialized zones are solutions for farmers to increase product value and secure supply for domestic and international consumption. Several goals need to be fulfilled, including lowering input costs and post-harvest losses by 5-10% and rising product value by 10-20%. These goals are expected to support around 186,000 cooperative members, to increase their revenues by 10-20%.
In addition to the government’s efforts, many firms have expressed their interest in developing townships dedicated to agricultural development. Specifically, CMIA Capital Partners, a Singapore-based private equity group, will lead the investment in a 1,018-hectare township in HCMC, which is valued at USD 1.1 billion.
The project will be developed by Surbana Jurong Group, a Temasek Holdings’ subsidiary specializing in urban infrastructure and managed services consulting. CMIA has also signed a memorandum of understanding (MOU) with HCMC to conduct the project in Cu Chi District. Once finished, the HCMC Agri Food-Tech Eco Township will serve as a regional urban center for agriculture, food, and technology.
The township will have 100,000 people and include a 200-hectare food science and technology industrial park. According to CMIA’s news release, it is expected to produce almost USD 2 billion in annual revenues and employ more than 20,000 people.
(Source: The Star, The Business News)